Ben Stine - Stock Trading: Stock Trading For Beginners--Learn & Master New Stock Trading Strategies--How to Make a Living Day Trading The Stock Market

Stock Trading

Stock Trading for Beginners Learn & Master New Stock Trading Strategies How to Make a Living Day Trading the Stock Market

Copyright 2020 By Ben Stine, All rights reserved.

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Introduction

C ongratulations on purchasing Stock Trading: Stock Trading for Beginners Learn & Master New Stock Trading Strategies How to Make a Living Day Trading the Stock Market and thank you for doing so.

The following chapters in the book will simplify the complicated world of the stock market and investments. All the basics have been explained in this book thoroughly so that the next time you venture into the world of the stock market, you know all about it. Apart from that, you will also learn about some useful strategies that can help you earn some profit and even make a living by trading stocks. Once you master these strategies, you will notice a significant change in your life and all the odds will start turning in your favor.

Investing in stocks will always have its risks, but it is your duty to navigate through those risky waters and excel in trading. Yes, it might seem a bit overwhelming at first but with this book in hand, you will learn it all in a step by step manner. By the end of this book, you will gain the confidence needed to make your own financial decisions. So, stop staring at jargon and start solving it by understanding the basics. After that, you can move on to the strategies but make sure you start this book with an open mind.

There are plenty of books on this subject on the market, thanks again for choosing this one! Every effort was made to ensure it is full of as much useful information as possible; please enjoy!

Legal Disclaimer

All the information in this book is for general educational purposes only. Results are not guaranteed and may vary. Nothing in this book should be taken as financial advice. Please always consult with a professional in this field before you take action

Chapter 1: Overview of Stock Trading

I f you have not yet tapped into the basics of stock trading, then everything you hear about it on CNBC or any other platform is bound to sound like jargon to you. But if your goal is to make a living by trading stocks, the first step should be to understand the basics and dont worry because this chapter has got you covered.

No matter what your age is, if you are planning to make your future secure, investing in the stock market can be quite a good option. It can really help in the growth of your wealth, pay for the education costs of your child, buy your dream house, or even fund your retirement. But you cannot dive in unprepared; otherwise, you might end up losing more than you gain.

What are Stocks?

S o, lets start with the most basic question of all. When a company changes its status to be public, they divide their company into shares which the investors can actually purchase. Now, you might be wondering what shares are? Well, they are nothing but a small unit of ownership of that same company. It might be clear to you that ownership of stocks means that you also have earned yourself some special rights. One of the most common rights that shareholders get is that they get a say or a vote regarding the members who are going to be on the board of directors. Also, when you purchase the shares of a certain company, you are entitled to a certain amount of profit and the amount will correlate to the number of stocks that you have in your possession.

Then comes the right of limited liability. This is applicable in case the company whose shares you have bought goes bankrupt. Yes, that can happen! And in case of such an event, your assets will not come into the middle of all this but the stocks will definitely become worthless. The same scenario applies to the situation where the company loses a lawsuit. But when companies are privately owned, these claims cannot be made.

Now, there are two different types of stocks which can be heart about very often, and Im sure you have heard their names too, that is, preferred and common. The rights enjoyed by these two stocks are completely different. When the public purchases a stock and owns it at large, then it is referred to as the common stock. On the other hand, a preferred stock might not share the same features as common stock but when it comes to dividends, preferred stock definitely has the upper hand in that matter. When preferred stocks are provided by companies, they also pay regular dividends and these are collected by the investors.

But, on a day-to-day basis, the ease of trade is with that of common stocks. Now, stock shares are also of different types. Before you decide to start with your investments in the stock market, having a basic understanding of the following terms is of utmost importance.

• Authorized Shares When a particular company starts, there is a fixed number of shares that you are actually authorized to. It is not mandatory for the company to issue the public with all of the authorized shares it has. Also, in case you want to increase the number of authorized shares as a shareholder, you will have to make a vote on the issue.